current ratiothe ratio is mainly used to give an, Electrical Engineering

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current ratiothe ratio is mainly used to give an

Current ratio

The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets. The higher the current ratio, the more capable the company is of paying its obligations.

Current Ratio = Current Assets/Current Liabilities

The ratio of Fantastic Holdings is more than that of the Nick Holdings showing efficiency of the company's operating cycle or its ability to turn its product into cash.

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